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Jul 14, 2011

Deustche Börse shareholders back merger with NYSE Euronext

Focus will now shift to the search for regulatory approval on both sides of the Atlantic.

Deutsche Börse shareholders have backed the exchange’s planned merger with NYSE Euronext.

The German bourse confirmed yesterday that the level of preliminary acceptances of a tender offer tied to the merger stands at above 80 percent.

The tender offer needed acceptances of at least 75 percent to proceed.

With shareholder support now in the bag for both parties, focus will shift to the regulatory hurdles that must be overcome on both sides of the Atlantic.

‘The big hurdle is still to come and that's the EC – that's the one thing I've been worried about,’ says Chris Allen, analyst at Evercore Partners in New York, in a report from Reuters.

‘You've had deals breaking apart for a variety of different reasons, each somewhat unique. This one is the most compelling out of all the deals that were on the table, and arguably makes the most sense because of the overlap in businesses.’

Last week, NYSE Euronext shareholders approved the merger at a special meeting in New York.

Shareholders on both sides had been offered a special dividend to back the deal, worth €2 ($3) for every Deutsche Börse share and €0.94 for each NYSE Euronext share.

Deutsche Börse and NYSE Euronext are hoping to succeed with their merger where other big exchange groups have failed. 

Last month, TMX Group called off its tie-up with the London Stock Exchange after the Canadian exchange group failed to secure enough shareholder backing for the deal.

Earlier this year, the Australian Stock Exchange and the Singapore Exchange saw their proposed merger blocked by Australian regulators on national interest grounds.

Tim Human

Tim Human is an international correspondent for IR magazine based in the UK Tim has been editor of IR Magazine, the global publication for investor relations professionals, since January 2013. Prior to becoming editor, he held various roles at IR...